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QUESTION
24. When wealth is shifted from the risky portfolio to the risk-free asset, what happens to the relative proportions of the various risky assets
24. When wealth is shifted from the risky portfolio to the risk-free asset, what happens to the relative proportions of the various risky assets within the risky portfolio? A) They all decrease. B) Some increase and some decrease. C) They all increase. D) They are not changed. E) The answer depends on the specific circumstances.
